DRC-2009-006927 - 0901a06880153ed8

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State of Utah
GARY R. HERBERT
Governor
GREG BELL
Lieuienanl Governor
Department of
Environmental Quality
Amanda Smith
Executive Director
DIVISION OF RADIATION CONTROL
Dane L. Fincrt'rock
Director
December 17, 2009
CERTIFIED MAIL
RETURNED RECEIPT REOUESTED
Mr. David C, Frydenlund
Vice President and General Counsel
Denison Mines (USA) Corp. (DUSA)
Independence Plaza, Suite 950
1050 Seventeenth Street
Denver, CO 80265
SUBJECT: Denison Mines (USA) Corp, (hereafter "DUSA") Stipulated Consent Agreement,
Docket UGW09-03, 30 Day Payment Demand.
Dear Mr. Frydenlund,
A Stipulated Consent Agreement, Docket UGW09-03 for the Nitrate Contamination Investigation
(hereafter "CIR''} and Corrective Action Plan (hereafter '*CAP") for \he White Mesa Uranium
Mill near Blanding, Utah was in force on Januar>' 27, 2009. Item 6.B ofthe Stipulated Consent
Agreement (hereafter "SCA") states:
"During the CIR investigation activities, DUSA mil provide a written notice to the Executive
Secretary at least 10 calendar days prior to all drilling, well completion, aquifer permeability testing,
and groundwater sampling activities. DUSA will allow the Executive Secretary the opportunity to
inspect these activities and split sample groundwater as'the Executive Secretary deems necessary. "
In a letter sent to the Division of Radiation Control (hereafter "DRC") dated September 3, 2009
DUSA admitted to having performed five (5) CIR activities without providing prior written notice
to the Executive Secretary at least 10 calendar days before, including;
1. Februarv 3 to 5. 2009 - DUSA drilled and completed monitor wells TWN-1, TWN-2,
TWN-3,andTWN-4.
2. Februarv 6. 2009 - DUSA sampled monitor wells TWN-1, TWN-2, TWN-3, and
TWN-4 for nitrate and chloride.
3. Julv2l.2009 - DUSA sampled monitor wells TWN-1, TW^-2, TWN-3, and TWN-4
for nitrate and chloride.
4. August 17 to 20, 2009 - DUSA drilled and completed monitor wells TWN-5, TWN-6,
168 Nonh 1950 West • Salt Uke City, UT
Mailing Address- P.O. Box 144S50 • Salt LakcCiry, UT 84114-4850
Telephone [phone]' Fax [phone] -T.DD. [phone]
n-ww.deq.uinli.gov
Prinicd on 100% nicycled paper
Page 2
TW^N-7, TWN-8, TWN-9, and TWN-10,
5. August 27. 2009 - DUSA sampled monitor wells TWN-5, TWN-6, TWN-7, TWN-8,
TW?^-9, and TWN-10 for nitrate and chloride.
Based on the above five (5) listed activities, DUSA is in violation of item 6,B ofthe SCA.
Item 7.A ofthe SCA states "[I]f DUSA fails to provide prior written notice, as required in item 6.B.
DUSA agrees to pay stipulated penalties in the amount of $500 per calendar day. " Therefore, based
on item 7.A the Executive Secretary could require DUSA to pay a penalty in the amount of $25,000
(see calculations in the table below):
CIR Activity
Februarv 3 to 5, 2009
Drilled and completed
monitor wells TWN-1,
TWN-2, TWN-3, and
TWN-4.
Februarv 6. 2009
Sampled monitor
wells TWN-1, TWN-
2, TWN-3, and TWN-
4 for nitrate and
chloride.
Julv 21, 2009 Sampled
monitor wells TWN-1,
TWN-2, TWN-3, and
TWN-4 for nitrate and
chloride.
August 17 to 20, 2009
Drilled and completed
monitor wells TWN-5,
TWN-6, TWN-7,
TWN-8, TWN-9, and
TWN-10.
August 27, 2009
Sampled monitor
wells TWN-5, TWN-
6, TWN-7, TWN-8,
TWN-9, and TWN-10
for nitrate and
chloride.
Total
Total Days of Non-
Compliance with Item
6.B ofthe SCA
10 .
10
10
10
10
50
Days of Non-
Compliance X $500
$5,000
$5,000
S5,000
$5,000
$5,000
S25,000
Page 3
Since the September 3, 2009 letter DUSA has provided written notice to the Executive Secretary
10 calendar days prior to all up coming CIR activities. As a result, the Executive Secretary has
decided that a $5,000 penalty is commensurate with the infractions involved.
As required in item 9 in the SCA please submit payment in the form of a check in the amount of
$5,000 made payable to the "State of Utah" to the address below within 30 calendar days of your
receipt of this letter. . Failure to submit the payment will result in elevated enforcement and
collection measures to resolve this matter.
Division of Radiation Control
Utah Department of Environmental Quality
P.O.Box 144850
168 North 1950 West
Salt Lake City, Utah 84114-4850
If you have any questions regarding this letter you may contact Dean Henderson by phone at
[phone].
Sincerely,
Dane L. Fin^jirock
Co-Executive Secretary
DLF/DCH
cc: Fred Nelson, Assistant Attomey General
Melissa Hubbell, Attomey General's Office
Amanda Smith, Executive Director, Utah Department of Environmental Quality